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You have a portfolio with a standard deviation of 26% and an expected return of 15%. You are considering adding one of the two stocks

You have a portfolio with a standard deviation of 26% and an expected return of 15%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add?

Expected

Return

Standard

Deviation

Correlation with

Your Portfolio's Returns

Stock A

15%

25%

0.2

Stock B

15%

19%

0.6

Standard deviation of the portfolio with stock A is _%?

Standard deviation of the portfolio with stock B is _%?

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